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Maximizing Benefits with 12A and 80G Combined


12a and 80g

Empowering Charitable Initiatives: Understanding 12A and 80G Registrations in India


For Non-Governmental Organizations (NGOs) in India, obtaining 12A and 80G registrations is a pivotal step in fostering philanthropic support and ensuring financial sustainability. This guide provides insights into the significance of 12A and 80G registrations, highlighting their distinct roles and the combined impact they can have on the operations and credibility of charitable organizations.

1. 12A Registration:

Purpose and Benefits:

12A registration is granted under Section 12A of the Income Tax Act, providing NGOs with exemption from income tax. This ensures that the organization’s income is not subject to taxation, allowing it to allocate resources more effectively to its charitable objectives.
Eligibility Criteria:

To qualify for 12A registration, NGOs must demonstrate that their activities are genuine and in line with the objectives specified in their Memorandum of Association (MOA).
2. 80G Registration:

Tax Benefits for Donors:

80G registration, granted under Section 80G of the Income Tax Act, enables donors to claim deductions on their taxable income for contributions made to registered NGOs. This encourages philanthropic support by providing donors with tangible tax benefits.
Types of 80G Certificates:

NGOs can obtain either a permanent or temporary 80G certificate. The permanent certificate is issued indefinitely, while the temporary certificate is for specific donation drives or campaigns.
3. Simultaneous Application for 12A and 80G:

Concurrent Process:
NGOs can apply for both 12A and 80G registrations simultaneously. The application processes for these registrations are separate but can be undertaken concurrently to streamline the overall registration process.
4. Documentation for 12A and 80G Registrations:

For 12A Registration:

NGOs need to submit documents such as the application form, MOA and rules/bylaws, audited financial statements, PAN and TAN, and a copy of the trust deed or society registration certificate.
For 80G Registration:

The application for 80G registration (Form 10G) requires details about the NGO’s objectives, activities, financials, and the board of trustees or directors.
5. Application Process:

12A Registration:

Submit the application for 12A registration to the Income Tax Department, which reviews the application and issues the registration certificate upon satisfaction.
80G Registration:

File Form 10G online on the Income Tax Department’s website, providing accurate details and supporting documents. The department verifies the application and issues the 80G registration certificate.
6. Advantages of Combined 12A and 80G Registrations:

Enhanced Credibility:

Having both 12A and 80G registrations enhances the credibility of an NGO. Donors are more likely to contribute to organizations with tax-exempt status and the ability to issue tax-deductible donation receipts.
Financial Sustainability:

The dual benefit of income tax exemption for the NGO and tax benefits for donors creates a more sustainable financial model for charitable initiatives.
7. Ongoing Compliance:

Annual Filings:
NGOs must comply with the annual filing requirements, submitting audited financial statements and activity reports to maintain their 12A and 80G registration status.

Obtaining both 12A and 80G registrations is a strategic move for NGOs in India, providing them with a comprehensive framework for financial sustainability and attracting philanthropic support. These registrations not only offer tax benefits to donors but also contribute to the overall credibility and impact of charitable organizations in their pursuit of social welfare.,

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This article is only published for informational purposes. Please consult your Chartered Accountant or Financial Advisor before making any important financial decisions.


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